Introduction to Samsung’s Semiconductor Recovery
Samsung’s semiconductor recovery has materialised during the third quarter of 2025, with the South Korean tech giant posting an operating profit of KRW 12.2 trillion (US$8.6 billion) – more than double the previous quarter and ending a streak of four consecutive quarterly declines in its chip division.
The Turnaround in Device Solutions
The turnaround centred on Samsung’s Device Solutions division, which reported KRW 33.1 trillion in revenue and KRW 7.0 trillion in operating profit, an over tenfold increase from the June quarter. The Memory Business achieved what Samsung described as “record-high quarterly revenue,” driven by expanded sales of high-bandwidth memory (HBM3E) chips and server solid-state drives – both important components for artificial intelligence infrastructure.
The Road Back from the Slump
Samsung’s journey to this quarter’s performance began in a different place. Throughout 2024 and into early 2025, the company faced multiple headwinds: a brutal memory chip glut that collapsed prices, delayed qualification of its HBM products with key customers, and the company seeing rival SK Hynix capture early leadership in AI memory chips. The low point came in the second quarter of 2025, when Samsung’s chip division reported operating profit that had analysts questioning whether the company had lost its technological edge.
HBM: From Laggard to Mass Production
Samsung’s ability to reverse its HBM fortunes proved central to the turnaround. The company confirmed that HBM3E is now “in mass production and being sold to all related customers,” while HBM4 samples are “simultaneously being shipped to key clients.” Reports emerged in late September that Samsung had passed Nvidia’s qualification tests for advanced high-bandwidth memory chips – a important milestone that had eluded the company for months.
Beyond Memory: Foundry Progress and Challenges
Samsung’s semiconductor recovery extended beyond memory chips. The Foundry Business, which manufactures chips designed by other companies, “posted a significant improvement in earnings in Q3 2025, stemming from a reduction in one-off costs and better fab use.” The division also achieved “record-high customer orders, mainly on advanced nodes.” The foundry business is ramping up mass production of 2-nanometer Gate-All-Around (GAA) products, an important technology that helps maintain competitiveness against TSMC, the company that dominates the foundry market.
What this Means for 2026
Samsung’s guidance for the coming year reflects confidence that the semiconductor recovery has staying power. The Memory Business will “focus on the mass production of HBM4 products with differentiated performance” while aiming to “scale out the HBM sales base.” The company plans capacity expansion in its 1c manufacturing process to meet projected HBM4 demand increases. Consolidated revenue for the quarter reached KRW 86.1 trillion, a 15.4% increase from the previous quarter and 8.85% higher year-over-year.
Conclusion
The semiconductor recovery that Samsung achieved in Q3 2025 resolves the immediate crisis that threatened its market position. Whether the company can sustain this momentum while navigating intense competition from SK Hynix in HBM, TSMC in foundry, and emerging geopolitical pressures on the chip industry will determine if this quarter marked a true turning point or merely a reprieve. For now, Samsung has demonstrated that even after four quarters of decline, strategic execution and market timing can still produce a comeback.
FAQs
- What was the operating profit of Samsung in the third quarter of 2025?
- KRW 12.2 trillion (US$8.6 billion)
- What drove the record-high quarterly revenue of Samsung’s Memory Business?
- Expanded sales of high-bandwidth memory (HBM3E) chips and server solid-state drives
- What is the current status of Samsung’s HBM3E production?
- In mass production and being sold to all related customers
- What is the plan of Samsung’s Memory Business for 2026?
- Focus on the mass production of HBM4 products with differentiated performance and scale out the HBM sales base.
